Yelp (YELP) investor relations material

Executive summary

• Net revenue for Q1 2026 grew 1% year-over-year to $361–$361.5 million, exceeding guidance, with net income of $17.7–$18 million and adjusted EBITDA of $79–$79.4 million, both with a 5% and 22% margin respectively.

• Over 35 new AI-driven features, including a cross-category Yelp Assistant, were launched, accelerating product innovation and operational efficiencies.

• Significant growth in other revenue, up 75% year-over-year to $29 million, driven by Hatch, data licensing, and food ordering partnerships.

• Strategic focus on AI transformation, highlighted by the acquisition of Hatch and expanded partnerships with DoorDash, Vagaro, Zocdoc, and OpenAI.

• The company repurchased 5.1 million shares for $125 million and increased its stock repurchase authorization by $500 million, with $413.8–$414 million remaining.

Financial highlights

• Net revenue: $361–$361.5 million, up 1% year-over-year and above guidance.

• Net income: $17.7–$18 million, down from $24.4 million year-over-year, 5% margin.

• Adjusted EBITDA: $79–$79.4 million, down from $84.9 million year-over-year, 22% margin.

• Free cash flow: $45.2 million, down from $87.5 million in the prior year.

• Cash and cash equivalents totaled $110.4 million at quarter end.

Outlook and guidance

• Q2 net revenue expected between $363 million and $368 million.

• Full-year net revenue expected between $1.455 billion and $1.475 billion.

• Q2 adjusted EBITDA expected between $70 million and $75 million.

• Full-year adjusted EBITDA expected between $310 million and $330 million, excluding Hatch-related payments.

• Targeting $250 million annual run rate in other revenue by end of 2028.